YPF and Petronas to Export LNG from Argentina as Vaca Muerta Oil Production Soars

YPF, Argentina's state-owned oil company, and Petronas, Malaysia's national oil company, have announced plans to export liquefied natural gas (LNG) from the Río Negro province in Argentina starting in 2026. This development comes as the Vaca Muerta oil fields in the region have reached record production levels, exceeding 450,000 barrels per day, the highest in 20 years.

The increasing output from Vaca Muerta has positioned Argentina as a major player in the global hydrocarbon market. YPF aims to further boost production capacity to 1.4 million barrels per day by 2026 through investments in infrastructure and exploration. The company plans to build a new pipeline and conduct a tender for the Vaca Muerta Sud area to support this growth.

Why this matters: The LNG export plans and soaring oil production in Vaca Muerta have the potential to transform Argentina's energy sector and boost its economy. As global demand for energy remains strong, Argentina is poised to become a significant exporter of hydrocarbons, attracting foreign investment and generating substantial revenue for the country.

In addition to the LNG export plans, YPF is also selling 55 conventional oil and gas areas across several provinces in Argentina. The company has already received interest from 60 companies and is actively seeking investors in the United States and Canada. Banco Santander is managing the sale process on behalf of YPF.

YPF's strategic focus on mature fields and the Vaca Muerta region is driving its growth plans. The company is investing $5 billion this year to develop these assets and aims to position Argentina as a major hydrocarbon exporter, targeting $30 billion in exports in the coming years.

The Vaca Muerta oil fields have emerged as a game-changer for Argentina's energy sector. The record production levels and the planned infrastructure investments are expected to attract significant foreign investment and create new job opportunities in the region. As YPF and Petronas move forward with their LNG export plans, Argentina is set to play an increasingly important role in the global energy market.

Key Takeaways

• YPF and Petronas plan to export LNG from Argentina's Río Negro province by 2026.
• Vaca Muerta oil fields reached record production of 450,000 barrels per day, highest in 20 years.
• YPF aims to boost production capacity to 1.4 million barrels per day by 2026.
• YPF is selling 55 conventional oil and gas areas across Argentina, attracting foreign investors.
• Argentina is poised to become a major hydrocarbon exporter, targeting $30 billion in exports.